Internal Audit MCQs 2026

A key aspect of Internal audit standards is that it involves

1. Ano standards for internal audit✓
2. Bonly manufacturing ISO 9001✓
3. CInternational Professional Practices Framework by IIA✓
4. Donly marketing standards✓

Regarding Internal audit vs external audit in Internal Audit, the accurate view is

1. Ainternal is ongoing management service external is independent opinion✓
2. Bidentical roles and reports✓
3. Cinternal provides statutory opinion✓
4. Dexternal reports only to CEO privately✓

Which statement about Operational efficiency review is correct

1. Aonly count cash daily✓
2. Bonly audit tax returns✓
3. Cinternal audit assesses whether resources used economically✓
4. Dnever review processes✓

Regarding Outsourced internal audit in Internal Audit, the accurate view is

1. Aalways prohibited✓
2. Bthird party provides internal audit services to entity✓
3. Csame as external statutory audit firm without safeguards✓
4. Deliminates need for any oversight✓

A key aspect of Advisory services internal audit is that it involves

1. Ainternal audit must never advise✓
2. Bconsulting on new systems and processes while maintaining objectivity✓
3. Cadvisory replaces all assurance✓
4. Dalways audit own consulting work without safeguard✓

Regarding Three lines model in Internal Audit, the accurate view is

1. Aall one line only✓
2. Bmanagement controls internal audit and external assurance as distinct lines✓
3. Cinternal audit replaces management controls✓
4. Dexternal audit reports to operations only✓

Internal audit function is best described as

1. Asame as external statutory auditor always✓
2. Bonly payroll processing✓
3. Conly reception duties✓
4. Dindependent objective assurance and consulting activity✓

Internal Audit: Risk-based internal auditing can be defined as

1. Arandom departments each year only✓
2. Bonly audit cafeteria always✓
3. Cignore enterprise risk register✓
4. Dprioritizing audit plans based on organizational risk assessment✓

Compliance role of internal audit is best described as

1. Aonly financial statement opinion✓
2. Bonly product design✓
3. Cevaluating adherence to policies laws and regulations✓
4. Dnever test controls✓

Internal Audit: Follow-up on findings can be defined as

1. Ainternal audit tracks management remediation of prior issues✓
2. Breport once never revisit✓
3. Cignore open recommendations✓
4. Donly external auditor follows up✓

Regarding Internal audit in public sector Pakistan in Internal Audit, the accurate view is

1. Ano internal audit in government✓
2. Bonly AGP performs all internal work✓
3. Cinternal control units in ministries and departments✓
4. Donly private sector has internal audit✓

Regarding Quality assurance of internal audit in Internal Audit, the accurate view is

1. Anever review internal audit quality✓
2. Binternal quality reviews and external assessments periodically✓
3. Conly client sales review✓
4. Dno methodology required✓

Which statement about Continuous monitoring is correct

1. Aannual paper review only sufficient always✓
2. Bprohibited in banks✓
3. Cmanagement ongoing processes supplemented by internal audit analytics✓
4. Dsame as external audit opinion✓

A key aspect of Maturity model for internal audit is that it involves

1. Ainternal audit always lowest level✓
2. Bno development path✓
3. Conly headcount metric✓
4. Dassessing progression from reactive to strategic partner role✓

In Internal Audit, Internal audit reporting line primarily means

1. Afunctionally to audit committee administratively to management✓
2. Bonly to lowest supervisor always✓
3. Conly to external suppliers✓
4. Donly to trade union exclusively✓

Regarding Coordination with external auditor in Internal Audit, the accurate view is

1. Ano communication ever✓
2. Bexternal auditor takes over internal completely✓
3. Csharing plans and findings to avoid duplication✓
4. Dinternal hides all reports from external✓

In Internal Audit, IT internal audit primarily means

1. Aonly paper vouchers in warehouse✓
2. Bnever enter data center✓
3. Creviewing access controls change management and disaster recovery✓
4. Donly marketing IT means social media posts✓

Fraud investigation by internal audit is best described as

1. Amust wait for external auditor only✓
2. Binternal audit may investigate allegations and recommend controls✓
3. Cnever investigate management✓
4. Donly police without internal role✓

A key aspect of Internal audit plan approval is that it involves

1. Aonly junior clerk approves✓
2. Bclient vendor approves✓
3. Cno approval needed✓
4. Daudit committee or board approves annual internal audit plan✓

A key aspect of Internal audit charter is that it involves

1. Averbal only no document✓
2. Bclient marketing plan✓
3. Cformal document defining purpose authority and responsibility✓
4. Dproduct warranty card✓